TISA CALLS FOR A NATIONAL SAVINGS STRATEGY
TISA (Tax Incentivised Savings Association), the premier trade association in the UK retail savings and investments industry, is calling on Government to help create a national savings strategy to integrate saving throughout consumers’ lives.
In its Pre-Budget submission to HM Treasury TISA outlines its vision for a Savings for Life culture which it says can be achieved by adopting a joined-up approach to the range of savings options available to meet the lifetime needs of the individual or family.
Tony Vine-Lott, TISA Direct General says:
“The stark reality is that the savings ratio is at an all-time low and this must be addressed by all of us in the industry and by Government. I believe that by enabling the consumer to see how options for savings link together and by increasing the use of the ISA model we have an opportunity to make a real difference very quickly.”
TISA’s submission highlights five essential recommendations:
• Development of a Workplace ISA attracting an employer’s contribution and with limited access to savings, similar to a Child Trust Fund only for adults. This would also be an attractive alternative to Personal Accounts for those disinclined to take up a pension.
• Auto enrolment into Employer based Stakeholder Pensions or Workplace ISAs as soon as possible.
• Linking Save As You Earn schemes and the new Saving Gateway to ISAs. • The direct transfer of trivially commuted pension pots into an ISA.
• Transfer of ISA savings and investments to the surviving partner on the death of a spouse without leaving the ISA wrapper.
“Coupled with the existing suite of savings products in the UK – Child Trust Funds, ISAs, SAYE schemes and the new Saving Gateway and Personal Account – these five recommendations will do much to encourage saving for life events, such as starting a family, buying a first home and retirement. It will enable people to look forward to a more financially secure retirement,” adds Tony Vine-Lott, “ISAs are also a particularly attractive option for those on low incomes who are unwilling to lock their money away in a pension fund.”
TISA is optimistic that Child Trust Funds (CTF) will bring great benefits to future generations as they learn early on the benefits that savings bring. To enhance the CTF, TISA would like to see an increase in the initial payment to £300 to counter the effects of inflation, since the original sum (£250) was introduced six years ago, also for this amount to be index-linked. The Association would also like to see a third CTF payment introduced at Secondary School age.
Ends
For further information: Steve Radford, Cauldron Consulting – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108 Email: tony.vine-lott@tisa.uk.com
Notes for editors: The Tax Incentivised Savings Association (TISA)
TISA is the premier trade association in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst at the same time encouraging more people to save for their long term financial security and piece of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership which comprises over 120 member firms involved in the supply or distribution of products to the sector and its consumer interest. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles including:
• Individual Savings Accounts (ISAs)
• Child Trust Funds (CTFs)
• Saving Gateway
• Personal Pensions and Personal Accounts
• Investment Bonds
• Employer based pension schemes
• Wraps and platforms
• Other consumer-centric savings schemes and initiatives.
HM Government uses TISA’s market knowledge and ability to represent the views of both the savings and investments industry and consumers to help it to deliver its policy in this area. Recent TISA successes include improvements to the ISA, the regime in which ISAs operate and simplification of the CTF.
TISA’s primary activities include:
• Advising political parties, HM Treasury, HM Revenue & Customs ,Financial Services Authority and Pensions Regulator on improvements to the various tax incentivised savings and investment vehicles
• Facilitating networking across the industry through TISA events including the Annual Conference, Advisory Groups, Discussion Forums and Executive Lunches
• Providing technical advice and assistance on scheme regulations
• Delivering training via seminars and workshops on topical issues as well as various courses on ISA and CTF administration.
TISA’s website: www.tisa.uk.com
Email enquiries to: enquiries@tisa.uk.com